Ethanol production at multi-month high, stocks shrink
U.S. ethanol production rose to a more than six month high last week.
The U.S. Energy Information Administration says production averaged 1.06 million barrels a day, an increase of 8,000 from the previous week and 16,000 from a year ago.
The cost of corn has declined and the industry is expecting strong consumer demand this summer.
Iowa State University’s Center for Agricultural and Rural Development says margins for the average Iowa plant shot higher last week, supported by that lower corn cost and those demand expectations.
The Renewable Fuels Association says the domestic supply of 22.26 million barrels was down 719,000 barrels on the week and 1.23 million barrels on the year.
Net inputs by refiners and blenders and the volume of gasoline supplied to the market were both above the prior week.
Ethanol exports averaged 80,000 barrels a day, a drop of 24,000 from the week before.
The USDA’s next corn for ethanol use estimate is out Wednesday, July 12th.